The Leading Index is produced by the Indiana Business Research Center in the Kelley School of Business.
With offices at both the Indianapolis and Bloomington campuses, researchers calculate the monthly index as a way for Indiana governments and businesses to understand the general trends in the state’s economy such as whether it is improving or declining, according to a press release.
The August index of 101.6 showed slight improvement from the revised July index of 101.2.
While the transportation component of the index dropped slightly, growth in manufacturing, the auto sector and home building were enough to propel the index forward.
The Leading Index is reaching its final days, and the last report will be published Oct. 21.
A recent study from Wells Fargo found that the relationship between interest rates was no longer an effective measure of an economy’s direction, according to the release.
As a result, though the interest rate is only one of five components of the Leading Index, Timothy Slaper, research director of the IBRC, said in the release that the report will require rethinking.
Anna Hyzy
